5 Stocks Under $10 Set to Surge

These under-$10 stocks look poised to trade higher from current levels.

Another under-$10 name that's trending within range of triggering a near-term breakout trade is Accelerate Diagnostics ( AXDX), which develops the BACcel system, planned for rapid diagnosis in life-threatening bacterial infections. It has also developed and out-licensed OptiChem surface coatings for use in microarraying components. This stock has been on fire so far in 2013, with shares up sharply by 62%.

If you take a look at the chart for Accelerate Diagnostics, you'll notice that this stock has started to come out of its recent downtrending pattern, with shares spiking higher off its low of $4.80 a share to its recent high of $6.77 a share. That bounce has moved shares of AXDX back above its 50-day moving average at $6.08 a share and it's now quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in AXDX if it manages to break out above some near-term overhead resistance levels at $6.77 to $7.38 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 62,100 shares. If that breakout triggers soon, then AXDX will set up to re-test or possibly take out its 52-week high at $8.99 a share. Any high-volume move above $8.99 a share could then easily push AXDX towards $10.

Traders can look to buy AXDX off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $6.08 a share or right below some key near-term support at $5.86 a share. One can also buy AXDX off strength once it clears those breakout levels with volume and then simply use a stop that sits right below its 50-day at $6.08 a share.